Anglo American Drops CEO Bonus Plan Amid Shareholder Concerns Over Teck Merger
Anglo American has abandoned a plan to pay CEO Duncan Wanblad an £8.5 million bonus related to its proposed merger with Teck. The bonus was tied to a Resolution 2 that guaranteed 62.5% of the maximum under a long-term incentive scheme. Investors, including Legal & General Investment Management, raised objections, citing concerns about short‑termism in incentives designed to reward multi‑year performance.
The Teck merger, valued at $50 billion in an all-share deal, aims to increase Anglo's copper exposure and offers a premium to Teck shareholders. The market response to the merger announcement has been positive. Anglo American emphasized that the purpose of long-term incentive schemes is to reward sustained multi-year performance and not to be retrofitted to recognize a single large deal as a near-term victory.
Anglo American has stated it will present an updated directors’ remuneration policy next year. Meanwhile, Wanblad is expected to benefit from existing share-based awards if the Teck deal proceeds. There remains debate over whether Wanblad and senior executives merit larger remuneration packages given the management of a bigger, Canada-based company. Calls have been made for open justification of any increase in executive pay.
Anglo’s shares have performed well this year, supported by the Teck deal announcement; however, decisions regarding payout should wait until the relevant performance period concludes.
